Thursday, November 27, 2014

Welcome to Crazytown


We're over the 5DMA for 28 days (29 if today closes above it, and it looks like it will). This has never happened before in history, EVER.

Frankly, this is madness. At this trajectory, we'll be at 2320 by year end. Cheers to seasonality and of course, awesome fundamentals.

What irks me is the fact that bonds have long ago decoupled from stocks. The 30 year yield is dropping even though stocks are surging to the moon. Yes, price is price and it is the most important thing. However, the bond market is bigger than the stock market and it has been crying wolf for a few weeks now.

Bonds up, stocks up, everything up. What could possibly go wrong?

Brace yourself. Volatility is coming.

2 comments:

  1. Hi GMGH

    Wow that looks like some roller coaster ride up there. Brace ourselves... storm is coming ;)

    ReplyDelete
    Replies
    1. Hi B,

      We're deep in uncharted waters now! Let's see where Mr. Market takes us, haha

      Delete

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